Problem 11-28 Determining the Break-even Point and Preparing a Contribution Margin Income Statement
Blackmon Manufacturing Company makes a product that it sells for $50
per unit. The company incurs variable manufacturing costs of $14 per
unit. Variable selling expenses are $6 per unit, annual fixed
manufacturing costs are $189,000, and fixed selling and administrative
costs are $141,000 per year.
a. Determine the break even point in units and dollars
b. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.
Check:
a. 11,000 units
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